Intel's 9.9% Stake Delivers $43B Return as Nvidia Vera CPU Looms
INTC•Intel's 9.9% government stake has yielded a $43 billion return since last August, and preliminary talks to handle Apple's chip needs could diversify its foundry revenues. Nvidia's Arm-based Vera CPU targets $20 billion revenue in a $200 billion server market, threatening Intel's data-center share as CEO Lip-Bu Tan meets TSMC.
1. Government Stake Windfall
The U.S. government's 9.9% equity position in Intel, acquired at $20.47 per share last August, has appreciated sharply, delivering a $43 billion return to date. This windfall underscores growing political support for domestic chip manufacturing and enhances Intel's financial flexibility for capital expenditures.
2. Apple Foundry Discussions
Intel has entered preliminary negotiations to produce unspecified chips for Apple, potentially adding a high-profile client alongside Nvidia and SpaceX. Securing Apple work could validate Intel's foundry turnaround, expand its external revenue beyond the current 3% level, and support scaling of 18A and 14A process nodes.
3. Nvidia Vera CPU Threat and TSMC Meetings
Nvidia plans to launch its Arm-based Vera processor into the standalone server CPU market, projecting $20 billion in revenue by 2027 from a $200 billion addressable market, directly challenging Intel's x86 data-center dominance. CEO Lip-Bu Tan will meet Taiwan Semiconductor Manufacturing leadership in Taiwan to solidify partnerships and discuss joint ventures ahead of his COMPUTEX keynote.
